Top Turkish lenders report Q1 consolidated net profits

ISTANBUL - Turkish private lender Akbank has reported a net consolidated profit of 661 million Turkish lira ($311 million) for the first three months of 2014, according to CEO Hakan Binbasgil.

Binbasgil said in a written statement Wednesday: "High volatility in leading indicators, such as interest rates and exchange rates, marked the first quarter of 2014 in Turkey as many emerging economies experienced similar developments.

"We began to receive positive economic signals in March. Despite the adverse market conditions in the first quarter, we grew our total assets compared to previous year-end and our assets exceeded 200 billion Turkish lira."

He added: "Our support to the Turkish economy via our cash and non-cash loans reached around 150 billion lira in the same period.

"In order to help firms further grow their businesses, Akbank increased its support to the real sector via its loans that topped 77 billion lira."

Meanwhile, Yapi Kredi Bank posted a consolidated net profit of 429 million lira for the same period.

A statement issued by the bank on Wednesday read: "Yapi Kredi recorded 1,938 million lira revenues (up five percent, year-on-year) driven by net interest income and collections performance. Net interest margin expanded by 13 bps on a quarterly basis and reached 3.4 percent thanks to repricing approach on both loans and deposits following a significant rate hike in January 14.

"During the same period, the bank recorded 3 percent year-on-year fee growth offset by strong collections under other income. Additionally, Yapı Kredi continued its better-than-sector evolution in cost management with a 15 percent year-on-year increase incorporating investments for growth. Net income was realized at 429 million lira, indicating a return on average tangible equity of 10 percent."